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FTX Implosion Fallout Continues

NASSAU, BAHAMAS – Bahamian provisional liquidators of the Failed crypto exchange FTX want New York’s Southern District Federal Bankruptcy Court to recognize them as the Bahamian liquidators of FTX.

Published

1 year ago

November 18, 2022

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The Tribune reporting the United States court filing by the local court-appointed liquidator Brian Simms has yet to get control of all FTX assets, amid signs of “serious fraud and mismanagement.”

In a November 15 affidavit Simms is saying provisional liquidators cannot determine FTX’s financial position because they lack access to the necessary documents and other information.

Simms is working with Price Waterhouse Coopers’ Kevin Cambridge and Peter Greaves.

Simms also saying that by recognizing the local liquidators, they will affirm the trio as FTX’s foreign representatives in the U.S. allowing them to do things like secure bank accounts, trace money, issue subpoenas and get relevant documents.

In a U.S. court filing new FTX CEO John Ray claiming there was flawed regulatory oversight and a lack of corporate control of FTX.

He said, “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

In the Deleware bankruptcy court filing ray sited:

“Compromised systems integrity and faulty regulatory oversight as well as concerns over control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals.”

He describes it as an unprecedented situation.

Ray is also alleged that Bankman-Fried made “Erratic and misleading public statements”, citing an exchange with a reporter on Twitter.

The head of Binance who abandoned a proposed rescue deal last week claims it was clear FTX misappropriated user funds and lied to investors.